The Iowa Biodiesel Board (IBB) went to the State Capitol in Des Moines Feb. 17 to address legislators about extension and expansion of biodiesel incentives, including a tax credit for the state’s 13 biodiesel producers.
Iowa Biodiesel Day on the Hill, hosted by IBB, included public education, a luncheon and meetings with legislators. The priorities addressed by IBB during the Day were the extension of the tax credit, which is currently 2 cents per gallon on the first 25 million gallons of production per biodiesel plant.
The Biodiesel Promotion Retail Tax Credit will also expire at the end of next year. It provides petroleum retailers 4.5 cents per gallon on blends with 5 percent or more biodiesel (B5). IBB also wants to add a 2.5-cent credit for blends of at least 11 percent or more of biodiesel for a total of 7 cents.
The Renewable Fuels Infrastructure Program, promoted by Gov. Terry Branstad, is also supported by IBB and was addressed during the meetings. Finally, the IBB supports the Biochemical Tax Credit legislation for more demand for biofuel production in Iowa.
“It makes sense that the majority of Iowa’s diesel fuel should contain at least some biodiesel, and we’re very interested in encouraging higher blends,” IBB Executive Director Grant Kimberley said. “Common sense would say we use our own fuel product rather than foreign oil. Expanding the retail tax credit for blends of B11 and higher would resoundingly help us accomplish that.”
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